Pangasius exports grow strongly thanks to good prices

22/08/2022    170

More than 300 Vietnamese pangasius exporters have made efforts to expand the market, especially in the EU, with export turnover growing positively thanks to good prices.

Export to 136 markets

Currently, more than 300 Vietnamese pangasius enterprises have exported to one 136 markets, earning a value of $1.4 billion in the first half of 2022, an increase of nearly 77% over the same period in 2021.

The average export price increasing sharply is the main factor that helps the export value of pangasius to markets rise.

According to Ms. Le Hang, Deputy Director of VASEP.PRO Center, the two markets of China and the US account for 55% of Vietnam's pangasius exports. In which, China accounted for 30% with nearly US$428 million, up nearly 79% over the same period. The US accounted for 25% with US$356 million, more than two times higher than in the first half of 2021.

The average export price of frozen pangasius fillets to the Chinese market in the first half of this year was $2.45/kg, up 37% from $1.79/kg in the same period in 2021.

The price of pangasius fillets exported to the US market averaged $4.66/kg, up 60% from $2.93/kg in the same period in 2021. The average export price of pangasius fillets to other markets increased from US$2.93/kg in the same period in 2021. The average export price of pangasius fillets to other markets increased from 28% to 66%.

Inflation increased to a record in the US, food prices increased by 20-30%, pangasius increased by 22% compared to the beginning of the year in retail supermarket chains. This is one of the factors that pushed the price of US pangasius imports from Vietnam to increase sharply.

The export price of frozen pangasius to the US market increased to $4.6-4.89/kg in the second quarter of 2022. However, it is forecast that in the third quarter of 2022, this average export price will decrease due to a sharp drop in domestic raw material prices by nearly VND10,000/kg compared to the previous quarter.

After the US and China are Mexico and Thailand, both of which have made a breakthrough in importing pangasius from Vietnam. In which, pangasius exports to Mexico increased by 81%, to Thailand by 90%. These two markets account for 3.7% and 4.4% of pangasius exports, respectively. Although accounting for a small proportion, along with the booming import of other markets such as the Netherlands increased by 74%, Canada increased by 109% and most markets grew by two to three digits.

Taking advantage of opportunities from the EU market

The EU used to be Vietnam's largest pangasius import market with peak sales of US$511 million in 2010, accounting for 36% of Vietnam's pangasius exports. Pangasius is actually seen as a competitor to some of the common European whitefish species.

According to the Vietnam Association of Seafood Exporters and Producers, since pangasius was included in WWF's red list in 2010, along with a smear campaign in some European countries with articles and programs TV shows falsely and negatively about the image of pangasius farming in Vietnam, pangasius exports to this market plummeted without stopping.

By 2021, pangasius exports to the EU will reach just over US$106 million, accounting for 7% of Vietnam's total pangasius exports. In the EU whitefish import market, Vietnamese pangasius only accounts for 1.6% of the market share.

However, since the EVFTA took effect (from August 1, 2020) there has been a great expectation for seafood exports, including pangasius. Accordingly, pangasius products will receive tax reduction according to a three-year roadmap, especially smoked pangasius, the tax reduction route will be seven years from the date of entry into force of the agreement.

However, the advantage of tariffs does not promote an increase in pangasius exports to the EU in the 2020-2021 period, because of the Covid-19 pandemic. The broken supply chain because of logistics stagnation, lack of shipping containers and sea freight four to ten times higher than before the pandemic is a disadvantage for the pangasius industry because the price cannot compensate for the high cost.

In 2022, the demand of the markets exploded after two years of suppression, domestic production was not enough.

Especially in the global geopolitical context, which is the Russia-Ukraine conflict, the lack of white fish raw materials amid the record-high inflation in the EU, which is a great opportunity for Vietnamese pangasius products. The EVFTA preferential tariff will promote more advantages for Vietnamese pangasius to the EU in 2022.

In mid-July 2022, all markets in the EU have strongly increased imports of Vietnamese pangasius, the lowest growth rate is 25%, the highest increase is nearly six times over the same period last year. The top five largest markets in the bloc include the Netherlands, which increased by 72% and accounted for 30% of pangasius exports to the EU, Germany increased by 107%, accounting for 12%, Spain increased by 75% and accounted for nearly 10%, Belgium increased by 92% and accounted for 9.7% and Italy increased by 90% and accounted for nearly 8% of the share.

More than 93% of pangasius export value to the EU is from frozen pangasius fillets (HS code 0304) with a value of US$113.5 million, up 94% over the same period. Frozen pangasius products (HS 0303) account for about 4.4%, the rest is processed pangasius, accounting for 1.6%.

With market opportunities and advantages from the EVFTA, it is forecast that pangasius exports to the EU in the second half of the year will continue to grow strongly and in the whole year 2022 will bring about over US$200 million in foreign currency, an increase of 90% compared to 2021.

Source: Customs News